Abstract
This paper examines the impact of assets quality, capital adequacy ratio, assets diversification and operating efficiency on banks’ profitability. This study employs bank scope data of eight commercial banks during the period of 2002/03–2016/17. Altogether, there are 96 observations are made in the study. The ordinary least squares model is used to analyze the data. The results indicate that three predictor variables assets quality, operating efficiency, and capital adequacy ratio significantly affect bank profitability. But the predictor variable diversification does not affect banks’ profitability significantly. The results of this study help the bankers and policymakers to take effective action in order to improve banks’ profitability.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
